Demand for HRC has softened in the Vietnamese market this week and customers have been asking for discounts. Moreover, the absence of Chinese customers in the market due to the holidays late this week has also been a reason for Vietnamese buyers to cut bids. The outlook for the next few weeks is mixed.
At the same time, Indian suppliers have been resisting price decreases and have kept offers for SAE1006 HRC at $445-450/mt CFR Vietnam. Bids have been heard at $440/mt CFR, while some customers have even been insisting on $435/mt CFR. Exporters have decided to wait until the next week and not to cut prices for the moment.
Offers for ex-Japan and ex-S. Korea HRC are still at $465/mt CFR Vietnam and above.
“Vietnam buyers bought a lot [of HRC] for August shipment, and so they keep watching the market to see if the demand will be better in coming weeks,” a trader said. According to sources, demand for ex-Vietnam high value-added flat steel products in the export market has increased. For instance, Vietnam sold around 60,000 mt of HDG coils to Thailand and there are more enquiries “since Thailand informed that they will impose AD tax for HDG from China and request TIS [Thai Industrial Standards] for coated steel from overseas,” a source told SteelOrbis.
Market sources have different opinions about the future development of the Vietnamese HRC market. “The market has become a little weak, but I think next week it will become better. Next week will be clearer,” a Vietnam-based source said. Another market participant said, “I expect prices will go down very soon.”
Chinese customers have mostly been out of the import market this week. Last week, some tonnages of Indian coils were sold at close to $440/mt CFR China.
